Gas and energy prices for households are still significantly lower in Romania compared with the countries of Central and Eastern Europe (CEE) and with the average in Western Europe, and slightly lower than the European average with respect to industrial consumers, showed a study conducted by Boston Consulting Group (BCG), says a press release of the Energy Utility Companies Association (ACUE).
“During the period 2008 – 2014, the prices of electricity and natural gas for households have increased by an average annual rate below inflation. For non-household clients, the increase of electricity prices remained below inflation, while for natural gas, the percentage increase exceeded this level as a result of the timing of price alignment of domestic gas to European ones”, communicates ACUE.
However, the share of total energy costs in the usual costs of low-income consumers remains relatively high, making the affordability of energy prices become a problem for them, and raises the need to build protection mechanisms, argues the association release.
Regarding the operations of transmission, distribution and supply of electricity and natural gas, ACUE says: “From 2008 to 2014, fares electricity and distribution tariffs, both for electricity and for natural gas remained below the European average and are, generally, similar to those in other CEE countries. Meanwhile, the density of networks for electricity and natural gas in Romania is among the lowest in Europe, both sectors facing a significant reduction in energy consumption, which translates into higher costs for maintenance of electricity and gas networks. Another problem facing Romania is the existence of networks of electricity and natural gas to be maintained even in areas where their operation is unprofitable economically because of low density of consumers, which implies higher costs for maintenance.”
Utility companies are planning investments of 600 million euro in 2015
Despite the fall in regulated revenues between 2008 and 2014, were made significant investments in transmission and distribution of electricity, worth 9.7 billion lei, says ACUE. Other 1.9 billion lei was invested in 2008-2013 in natural gas distribution networks for the purpose of maintaining, expanding and improving their quality.
From privatization to date, natural gas and electricity companies members of ACUE Federation have invested in Romania approximately 8.7 billion euros and have investment plans for 2015 of approximately 600 million euros, according to the association.